Product details
The higher rates found with a term deposit still apply with the 12 Months Regular Income account, except you can choose to collect payment from them on a regular basis. This is a specialised savings account with the benefit of a fixed interest rate for one year, and the opportunity to add to your account throughout the term.
- Product Name
- BankVIC 12 Months Regular Income
- 12 month interest rate
- 2.50%
- Min Deposit
- $5,000
- Minimum Age Requirement
- 18
What are the features of the BankVic 12 Months Regular Income?
The competitive interest rates offered by term deposit accounts makes them a profitable investment opportunity for Australians who don’t mind limited access to their money. Rates, fees and other features will vary between banks, so consider comparing multiple accounts before making a commitment to one:
Interest rates from 2.50% p.a.
If you invest from $5,000, the starting interest rate is 2.50% p.a.. This is a term deposit of one year.
How is my interest calculated and paid?
The interest is calculated on your daily balance in the account. You can choose fortnightly, monthly, quarterly or yearly interest payments into a separate account, or allow it to be compounded with the balance at the end of the year.
Interest is paid into your nominated account
In order to receive regular income interest payments you must nominate a BankVic transaction account for this one to be linked to.
$0 Account keeping fees
No monthly or maintenance fees will be charged to you.
$5,000 minimum investment
To open the account you must be able to invest at least $5,000.
Additional deposits permitted
You are permitted to make additional deposits into the account in increments of $2,000.
Automatic re-investment upon account maturity
At least one week before the account is due to complete the term, you will receive a written notice from BankVic along with its current interest rates. If you do not respond to this notice with instructions on what to do with the account the full amount in the account will be reinvested in a new term deposit at the current rate and for the same payment terms as your previous account.
Penalties apply for early withdrawals
Generally an early withdrawal of all or part of the funds will not be permitted, but if extenuating circumstances dictate it is necessary you will need to make the request in writing. At the bank’s discretion the withdrawal will be granted and you could be subject to a reduction in the interest rate.
Membership restrictions apply
BankVic is a mutual bank which has chosen to limit their products and services to only those Australian who are members of a police force or other form of public service. Family members of eligible persons are also welcome to join. You can compare other BankVIC products and services here.
Pros
- Specialised savings account with the benefit of a fixed interest rate
- No management or account keeping fees
- Competitive interest rates
Cons
- Minimum initial deposit of $5,000
What you’ll need to know before applying
With BankVic you can apply for the 12 Months Regular Income term deposit account by calling or stopping by your local branch. You are also able to fill in an online application.
Eligibility to apply online
Before you get started, there are some eligibility requirements that you should become familiar with:
- Minimum age. All applicants must confirm that they are at least 18 years of age before being able to continue with the application.
- Residency requirements. BankVic and their products are only open to Australian residents and citizens.
- Depository requirements. You will have to deposit at least $5,000 into the account before it can be activated.
Documentation to apply online
After confirming that you meet the eligibility requirements, you can proceed to the application with the following documentation ready:
- Tax file number. While not required, providing BankVic with your tax file number (TFN) will ensure that withholdings on your interest payments are being made at the correct amount.
- Identification. To get started on your application you are going to be asked to provide information from your driver’s licence or passport.
- Membership number. Before continuing you will need to provide your membership number for BankVic mutual bank. If you are not already a member you can apply online as well, keeping in mind that you are going to be asked to pay for ten, $1 shares as a part of your membership.
- Account number. You will need to provide a BankVic transaction account number in order to transfer interest payments and make your initial deposit.
What happens after I submit my application
Once the deposit has cleared into the account, it will be considered active and begin earning interest. A term certificate will be mailed to the address that you provided, confirming the account information with you.
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